It's pretty cool. Don't have a Kinekt, but if I did I'd consider this worth about $20. I couldn't tell whether the lighting was baked into the model or extracted from the scene.

The video is not great. you need to move around more, approach and recede from the camera, show the full range of gesture available, and have a mode for high-quality offline rendering of the tracked motion as well as realtime for a pro edition that you can sell for more. Also, how many people can you handle in the frame at once?